The bank doesn’t have to know about your addendum, but if they find out about your rebate, the bank has a good case against you called fraud.
The bank is making the 90/10 loan to the buyer thinking that you are putting 10% down when in actuality there is no money being put down on the deal. Would the bank do this deal if they knew that 0 downpayment in involved? Good question.
Don’t try to hide anything from the bank. It could come back to haunt you especially if in the future your loan goes bad.
Lets say a house is for sale for $50,000. My offer to purchase is for $50,000 with $5,000 back from the seller for a so called decorating allowance (or whatever you want to call it). Therfore buying the home for $45,000 with no money down. This would allow me to take out a 90/10 mortgage and get a 100% refund of my 10% down payment.
If you do something like this. You would want to have the seller refund on an addendum to the agreement and not on the sales agreement. The lender dosn’t need to know about this. Tom